Fitch to give B to YPF bond

Fitch Ratings said it expects to assign a rating of B(EXP)/RR4 to YPF SA's proposed senior unsecured bond issuance due 2019.

The proposed issuance will be denominated in Swiss Francs, carry a fixed interest rate and the proceeds will be used to fund fixed-asset investments in Argentina and working capital requirements.

The notes will rank at least pari passu in priority of payment with all other YPF senior unsecured debt. The notes would be rated the same as all of YPF's senior unsecured obligations.

Fitch said the ratings reflect YPF's strong linkage with the credit quality of the Republic of Argentina and the company's relatively low reserve life.

The B ratings are linked to the sovereign rating of Argentina, which has a long-term foreign and local currency issuer default rating of B.

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